Grocery Chains Announcing Store Closures In Several U.S. States

The Perfect Storm Behind Grocery Store Closures

Imagine walking into your neighborhood grocery store only to see bare shelves and closing signs. This scenario is becoming increasingly common across America as grocery chains face unprecedented challenges that have forced them into difficult decisions. In recent years, they’ve had to battle a perfect storm of shifting customer behavior, rising prices from the cost of living crisis, the potential for tariffs, and advances in technology that have left physical stores increasingly obsolete. As a result, 2024 saw the highest number of grocery store closures since 2020, with many shoppers turning to online ordering as a replacement.

The numbers paint a stark picture of retail transformation. In 2024, U.S. store closures reached high levels, among the highest seen since 2020. But here’s the kicker – things are about to get even worse. Coresight Research has predicted that 2025 is set to see even more closures, potentially reaching significant numbers.

The Failed Merger That Shook the Industry

Picture this: two grocery giants trying to merge into one massive supermarket empire, only to crash and burn in spectacular fashion. That’s exactly what happened when Kroger attempted to acquire Albertsons in a deal worth twenty-five billion dollars. In October 2022, Kroger reached an agreement to acquire Albertsons for $25 billion – a move that would have created one of the largest grocery chains in the United States. However, in 2024, the Federal Trade Commission (FTC) sued to block the merger, alleging that it would lead to higher prices and eliminate competition.

The aftermath has been brutal for both companies. The planned union with the Ohio-based Kroger had not only fallen apart, but had also devolved into a legal dispute between the companies over who was responsible for the plan going sideways. For Albertsons, this amounted to seeking billions of dollars in restitution to cover legal fees, lost value, and a $600 million termination fee. Now both chains are scrambling to cut costs and optimize their operations, which means more store closures ahead.

Stop & Shop’s Massive 32-Store Closure Wave

When Stop & Shop announced its plans to shutter thirty-two locations across the Northeast, it sent shockwaves through communities that had depended on these stores for decades. In addition to continuing to make investments in price and the customer experience as part of its growth strategy in its markets, Stop & Shop will close 32 underperforming stores by year-end. Following the closures, Stop & Shop will continue to have a strong presence across its five-state footprint with more than 350 stores.

The closures hit multiple states hard, with New Jersey taking the biggest blow. Stop & Shop is closing 32 stores, nearly two dozen of them in the tri-state area, by the end of the year. New Jersey accounts for 10 of them. The affected stores span all five states it has locations in, including 10 in New Jersey, eight in Massachusetts, seven in New York, five in Connecticut plus two locations in Rhode Island. These weren’t random closures either – these were strategic decisions based on cold, hard numbers about store performance and profitability.

Albertsons’ Strategic Portfolio Cleanup

Following the failed Kroger merger, Albertsons has been forced into what executives euphemistically call “general hygiene of the real estate portfolio.” Translation? They’re closing stores that aren’t making enough money. On the January 2025 earnings call for 2024’s third quarter, Albertsons president and CFO Sharon McCollum made clear that closures would likely occur in the coming years as a result of the “general hygiene of the real estate portfolio.”

At the time the merger fell through in December 2024, the grocery chain had notified the 87 employees at the Roseburg, Oregon location of its plan to shutter that location in February 2025, making it the first confirmed closure for the brand. But this is just the beginning. In an earnings call in January 2025, Albertsons’ leadership revealed plans to close numerous stores as part of a streamlining effort, noting that their portfolio was “outsized” in certain areas. The grocery chain hasn’t specified which locations are likely to be affected, but the closure process could reportedly extend over several years.

Safeway’s Twelve-Store Shutdown Spree

Safeway, the Albertsons-owned chain that many families have trusted for generations, is pulling out of several key markets. Supermarket chain Safeway is planning close 12 of its stores in the coming weeks. The grocer, which is a subsidiary of Albertsons Companies, currently operates over 900 stores across the United States. But Safeway will shutter the doors at some locations in Colorado, Nebraska, and New Mexico.

Colorado is bearing the brunt of these closures. Ten of the planned store closures are in Colorado. Meanwhile, one store in Nebraska and one store in New Mexico will also close, Albertsons confirmed with Fast Company. The company isn’t sugarcoating the situation either. We continuously evaluate the performance of our stores, and occasionally, after long and careful deliberation, it becomes necessary to make the difficult decision to close certain locations.

Shaw’s New England Exit Strategy

Shaw’s has always been the neighborhood grocery store that felt like home in New England, operating exclusively in the region with a cozy, local feel that big-box stores couldn’t replicate. Part of the appeal of Shaw’s is that it’s always been a big fish in a relatively small pond, which has given it a sense of familiarity. The retailer operates its 125 stores exclusively in the New England region, and while it may not have the footprint of Walmart, it has a local feel that’s a bit more cosy.

But that homey feeling might not last much longer. Shaw’s recently announced that it was closing two of its stores in New England in 2025, and it could be the case that more are to follow. The Shaw’s store closures in Gloucester, Massachusetts and Concord, New Hampshire were announced in mid-March, with employees being relocated to nearby locations. For communities that have relied on Shaw’s as their primary grocery source, these closures represent more than just business decisions – they’re the loss of neighborhood institutions.

Dollar General’s Massive 96-Store Purge

When Dollar General talks about conducting a “store portfolio optimization review,” you know something big is coming. And by big, we mean the closure of nearly one hundred stores. This was proven in a Q4 2024 investor call, in which Dollar General announced that it had conducted a “store portfolio optimization review.” This is intense corporate talk for “we checked how much money our stores were making, and some of them need to go.” As a result, Dollar General told investors that it planned to close a significant number of its stores by the start of 2026.

It also noted that it was going to convert six of its pOpshelf stores to Dollar General outlets in the same period, and close pOpshelf stores as well. This is a pretty dramatic move from the chain, and could see plenty of folks without a local Dollar General to buy cut-price goods from – which, at a time like this, isn’t great news. The timing couldn’t be worse for communities already struggling with inflation and reduced access to affordable goods.

Amazon Fresh’s Tech Experiment Fallout

Even tech giant Amazon isn’t immune to the grocery store closure trend. After investing heavily in experimental technology that promised to revolutionize shopping, the company is now scaling back its physical presence. Roughly a year after Amazon scrapped its “Just Walk Out” technology from its Fresh and Whole Foods Markets, two Fresh locations were marked for closure.

Whether trying out new recipes or aiming for paradigm shifting advancements in society, bold experimentation was often the only way forward – even if that meant a foray into the wild and weird. While being owned by the world’s largest e-retailer helped facilitate such efforts, it was no guarantee of success. It turns out that even Amazon’s deep pockets and technological prowess couldn’t overcome the fundamental challenges facing physical grocery retail.

Walmart’s Selective Store Strategy

Even retail giant Walmart, despite its dominance in the grocery space, hasn’t been completely immune to closure pressures. The company has been making strategic decisions to optimize its footprint, though it’s being more selective than other chains. Walmart said it will close a store in Coon Rapids, Minn. on August 29, 2025. The Coon Rapids, Minnesota store closure, however, marks the second store closed in the northern Twin Cities area in two years.

The retail giant confirmed it will permanently shut down a handful of stores across multiple states, citing a push to “optimize store performance” and focus on locations with stronger customer traffic. Closures are coming soon to: Dunwoody and Marietta, Georgia · Towson, Maryland · Columbus, Ohio · Milwaukee, Wisconsin · Aurora, Colorado · San Diego, El Cajon, West Covina, Fremont, and Granite Bay, California. However, it’s worth noting that Walmart initially denied reports of widespread closures, with the company clarifying that these were 2024 closures being misreported as 2025 plans.

Shoppers Food’s Maryland Retreat

Shoppers Food recently made the tough decision to close four locations across Maryland, citing the need to optimize their footprint for maximum efficiency. And it recently announced the planned closure of four store locations by October 11. The company did not give one specific reason for the closure, stating, “We’re constantly working to optimize our footprint, which includes investing in stores as well as closing stores where necessary so we can operate as effectively and efficiently as possible.”

But there’s another troubling factor at play that many companies won’t openly discuss. But while Shoppers Food may be closing these four locations to trim its footprint and allocate its financial resources more wisely, it’s hard to overlook the fact that rampant retail theft in Maryland may also have driven the decision. In 2024, retail stores lost a whopping $45 billion to theft, according to Capital One Shopping. This represents a hidden crisis that’s forcing grocery chains to abandon communities they’ve served for years.

The Human Cost of Store Closures

Behind every closure announcement are real people whose lives are being turned upside down. When grocery stores disappear, they don’t just take jobs with them – they create food deserts that can devastate entire communities. Grocery store closures impact local communities. In addition to job losses, closures result in reduced access to food. Supermarket store closures contribute to food deserts, a term used to describe areas with limited access to affordable and nutritious food.

The statistics are sobering. According to recent data from the USDA’s Food Access Research Atlas, an estimated 18.8 million people in the United States, or 6.1% of the U.S. population, live in areas with limited access to healthy foods. Every grocery store closure adds to this number, creating ripple effects that extend far beyond simple inconvenience. But when grocery stores shutter, communities get impacted in a serious way. It can become harder for people to stock their kitchens affordably and get access to the products they love. And store closures can also devalue properties if too many of them happen at once.

The grocery store landscape is undergoing its most dramatic transformation in decades, with closures far outpacing openings as chains struggle to adapt to changing consumer habits and economic pressures. Not only do they want the best prices, but they also have no patience for stores that are constantly disorganized, out of stock, and that deliver poor customer service. As this retail apocalypse continues to unfold, one thing is certain: the American grocery shopping experience will never be quite the same again. What will your neighborhood look like when the dust finally settles?

Why Rural and Low-Income Areas Are Hit Hardest

Here’s the brutal truth nobody wants to talk about: grocery store closures aren’t happening equally across America. Rural communities and low-income neighborhoods are bearing the brunt of this retail exodus, and it’s creating a two-tiered food system that should alarm everyone. Major chains are pulling out of areas where profit margins are thin, leaving behind populations that can least afford to travel long distances for groceries. In some rural towns, residents now face drives of 30 miles or more just to reach the nearest full-service supermarket. These aren’t just inconveniences – they’re forcing families to choose between spending money on gas or buying fresh produce. Meanwhile, wealthier suburban areas continue to see new stores opening, complete with organic sections and fancy prepared food bars. The disparity is shocking when you look at the numbers: communities with median household incomes below $35,000 are three times more likely to lose their grocery stores than areas where families earn over $75,000. What’s emerging is a disturbing pattern where your zip code increasingly determines whether you can easily feed your family healthy food, and that should make all of us uncomfortable about where this trend is heading.